CESSION IN SECURITY AND PLEDGE Sample Clauses
The 'Cession In Security and Pledge' clause establishes that a party transfers certain rights or assets to another party as collateral to secure the fulfillment of an obligation, typically a debt. In practice, this may involve assigning rights to receivables, shares, or other property, or physically delivering documents or items to the creditor, who holds them until the underlying obligation is satisfied. This clause's core function is to provide the creditor with security, reducing their risk by ensuring they have recourse to specific assets if the debtor defaults.
CESSION IN SECURITY AND PLEDGE. 4.1.1 Subject to the provisions of clause 4.2 (Nature of Cession and Pledge), each Cedent hereby irrevocably and unconditionally –
4.1.1.1 cedes in securitatem debiti and pledges (as applicable) to the Debt Guarantor all its Secured Property, in each case individually and collectively with all the other Secured Property, with effect from the Signature Date; and
4.1.1.2 is deemed to cede in securitatem debiti and pledge to the Debt Guarantor all Shares of which it becomes the owner from time to time or which may be issued or transferred to it in future, with effect from the date on which the Cedent acquires beneficial ownership thereof, as continuing general covering security for the due, proper and timeous payment and performance in full of all the Secured Obligations, on the terms set out in this Agreement, which cession and pledge the Debt Guarantor accepts.
4.1.2 The cession in securitatem debiti and pledge (as applicable) contemplated in 4.1.1 constitutes first ranking security in favour of the Debt Guarantor in that it ranks in preference and prior to any other current or future security.
CESSION IN SECURITY AND PLEDGE. As security for the due and punctual performance of the Secured Obligations, each Cedent has agreed to pledge its Shares and Investments and to cede in securitatem debiti all its other Secured Property to the Debt Guarantor, on the terms set out in this Agreement.